The Achilles Heel of the Dual Income Tax. The Norwegian Case

Arbeitspapier

The dual income tax provides the self-employed individual with large incentives to participate in tax minimizing income shifting. The present paper analyses the income shifting incentives under the Norwegian split model in the presence of technology risk, and it concludes that the widely held corporation serves as a tax shelter for high-income self-employed individuals. In addition, real capital investments with a low risk profile are means to shift income from the labor income tax base to the capital income tax base for the high-income self-employed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 474

Classification and Topics

• Classification: Wirtschaft ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Business Taxes and Subsidies including sales and value-added (VAT) ; Fiscal Policies and Behavior of Economic Agents: Firm
• Subject: Dual income tax ; tax avoidance ; risky investments ; choice of organizational form

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alstadsæter, Annette
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/192456
• Last update: 10.03.2025, 11:42 AM CET